Tenant Improvements Once you decide on a location to rent you may realize that there needs to be significant work done to the space in order to get it ready to suit your business operations.
If this is the case then you should definitely try to get the landlord to foot the bill or at the very minimum help pay for some of it.
You can negotiate terms such as signing a longer term lease in exchange for the improvements to the space you will be renting.
Just remember that you don't want to be caught up in a situation where you have signed a lease term that is longer than you are comfortable with.
So, if you are put in that situation think about negotiating different areas of the lease to come to an agreement.
This leads me into another point that you should be aware of - subleases and assignments.
This is something that you will definitely want to ask for.
This allows you some flexibility for the space you are renting.
For example, you could rent a large enough space to grow into.
You could use only half of the space and sublease the other half out until you grow the business enough that you need the rest of the area.
Another example is that if you need to move from that location for any reason you could then have someone else take the space and you would not be breaking your lease.
These five articles are just a few tips and things I have learned from my past experiences.
There are several more aspects of a lease that need to be examined carefully before committing to it.
Here is a quick overview of things to look out for in a lease upon reviewing your lease contract:
However, most leases are subject to negotiations and you should never just settle and pay the asking price for a lease.
Once the lease is drawn up make sure you read it thoroughly.
Reading the lease is a pretty boring thing to do but if you know the ins and outs of your lease it will pay off in the long run.
If this is the case then you should definitely try to get the landlord to foot the bill or at the very minimum help pay for some of it.
You can negotiate terms such as signing a longer term lease in exchange for the improvements to the space you will be renting.
Just remember that you don't want to be caught up in a situation where you have signed a lease term that is longer than you are comfortable with.
So, if you are put in that situation think about negotiating different areas of the lease to come to an agreement.
This leads me into another point that you should be aware of - subleases and assignments.
This is something that you will definitely want to ask for.
This allows you some flexibility for the space you are renting.
For example, you could rent a large enough space to grow into.
You could use only half of the space and sublease the other half out until you grow the business enough that you need the rest of the area.
Another example is that if you need to move from that location for any reason you could then have someone else take the space and you would not be breaking your lease.
These five articles are just a few tips and things I have learned from my past experiences.
There are several more aspects of a lease that need to be examined carefully before committing to it.
Here is a quick overview of things to look out for in a lease upon reviewing your lease contract:
- The length of the lease and the renewal options obtain therein
- The amount of rent and the rent increases.
Make sure you are paying a reasonable amount - Pay attention to the items your rent includes.
For example, check and see if the rent you are paying includes things like property taxes, insurance, maintenance costs, etc.
or if these and other items will be your responsibility to pay. - Know how much your CAM fees are going to be and what all this includes.
Make sure it seems reasonable. - Make sure you can work subleasing and assignments into the lease.
- Understand how and if your lease can be terminated and the penalties that are involved for early termination.
- Other things to consider include sign placement and specifications as this can be a very large expense at some shopping centers.
Other restrictions such as hanging posters/signs in your windows, putting stand up signs outside your door or on the sidewalk, and if there is a restriction on how late you can stay open.
However, most leases are subject to negotiations and you should never just settle and pay the asking price for a lease.
Once the lease is drawn up make sure you read it thoroughly.
Reading the lease is a pretty boring thing to do but if you know the ins and outs of your lease it will pay off in the long run.
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